Norinchukin Bank redeeming over $4.6b of perpetual loans

The redemption is part of the bank's efforts to improve its investment portfolio.

Norinchukin Bank is redeeming approximately JPY0.7t (over $4.6b) of perpetual subordinated loans on 30 September 2024.

The bank is also allocating a new issuance of JPY736b ($4.93b) in lower-dividend rate stocks by the same date.

The funds will be from and to its member cooperatives. The bank is currently proceeding with the necessary procedures for this capital reallocation, it said.

Norinchukin is also issuing approximately JPY0.6t ($4.02b) in fixed-term subordinated loans to its member cooperatives during FY2024.

The move comes as the bank posted a net loss of $2.75b in Q1 FY2024. 

In a statement, Norinchukin said that it will “steadily improve its investment portfolio and pursue initiatives to establish an even more robust profitability base.”

(US$1 = JPY149.32; as of 2 August 2024, 12:33PM)